Standard Deductions from Salary

Teachers’ income is assessed for tax under the Pay As You Earn (PAYE) system. The amount of tax deducted is based on the ‘taxable income’ of an individual in the year of assessment.  The tax year commences on 1 January each year and runs until the 31 December.

Income tax is not deducted from total gross earnings. Contributions to the Superannuation Scheme are automatically deducted before PAYE is applied. Tax relief is also allowed on AVCs subject to certain revenue limits. Tax Saver Commuter Tickets, where relevant, are also deducted at source. For those in the Salary Protection Scheme for INTO members, the portion of your scheme premium that is paid towards Disability Benefit is eligible for income tax relief.

Taxpayers are allowed a portion of their salary free of deductions from income tax. The amount of each individual’s tax credits varies depending on the number of allowances/reliefs they are entitled to.

Therefore, in calculating the amount of tax payable on salary, superannuation contributions and tax credits are deducted from gross earnings. The balance or ‘taxable income’ is taxed at the applicable rate(s) of taxation.

Employees may also qualify for Flat Rate Expense (FRE) allowances.

FRE allowances are those that cover certain employment related expenses, including statutory registration fees. These expenses must:

• be incurred by an employee in performing the duties of their employment; and
• directly relate to the nature of their employment.

Teachers’ Flat Rate Expenses:

Principal teachers	€608
Other teachers	€518
Part-time teachers	€279

 

An allowance for teachers “engaged mainly in teaching general subjects but also doing part-time PE” of €126 is also available. The allowance is available only for fully qualified physical education teachers engaged in PE. The allowance is not available to teachers who do not have this qualification.

A claim must be submitted each year to benefit from an FRE allowance. This can be done using Revenue’s online service, myAccount:

• Using the PAYE Services tab in myAccount, PAYE taxpayers can claim the FRE allowance in the current tax year. When an FRE allowance is claimed in a year, the relevant allowance is included on an amended Tac Credit Certificate and the benefit of the allowance is made through payroll.

Alternatively, PAYE taxpayers can claim the FRE allowance for previous tax years by completing an annual Income Tax return in myAccount.

The rates of tax deducted on taxable income may vary from year to year and are generally adjusted in the Budget. There are currently two tax bands, referred to as the standard rate (20%) and the higher or marginal rate (40%).

Your Employment Detail Summary (EDS) will contain income and deduction details from each of your employments or pensions for the relevant year. It will be available in January. You can download or print the document and use it as proof of income, where required.

If you are an employee you can access your EDS in ‘PAYE Services’ on myAccount. You can use your EDS as verification of your income in dealings with third parties such as financial institutions.

To view your EDS, sign into myAccount and take the following steps:

1. Select the ‘View your Employment Detail Summary (EDS) documents’ link in the ‘PAYE Services’ section.
2. Select the tax year for which you need the EDS and click ‘Create EDS’.
3. To create a PDF version of your EDS, select ‘Create Document’.
4. If you wish to view, print or save your EDS, select the ‘My Documents’ button.

Your PRSI Class is printed towards the bottom of your payslip.

Different rates of PRSI contribution apply to different categories of employment. Each rate of PRSI contribution is given a special code and is called a Contribution Class. Each Contribution Class provides cover for a different range of benefits.

Permanent and temporary teachers appointed prior to 6 April 1995 and without a break in service since that date pay Class D contributions.  All teachers appointed after 6^th April 1995 pay Class A contributions.

Class D PRSI is paid at a rate of 1%. It is due to rise to 1.1% on 1^st October 2025.

Class A PRSI is paid by employees at a rate of 4.1%. It is due to rise to 4.2% on 1 October 2025.

Contribution Class D Benefits:

Subject to satisfying the relevant contribution requirements, Class D contributors are insured for:

• Widow’s or Widower’s or Surviving Civil Partner’s (Contributory) Pension
• Occupational Injuries Benefits
• Carer’s Benefit
• Parent’s Benefit

Contribution Class A Benefits:

Subject to satisfying the relevant contribution requirements, Class A contributors are insured for:

• Maternity Benefit
• Adoptive Benefit
• Health and Safety Benefit
• Occupational Injuries Benefit
• Jobseeker’s Benefit
• Illness Benefit
• Partial Capacity Benefit
• Paternity Benefit
• Invalidity Pension
• Widow’s or Widower’s or Surviving Civil Partner’s (Contributory) Pension
• State Contributory Pension
• Treatment Benefit
• Occupational Injuries Benefits
• Carer’s Benefit
• Parent’s Benefit
• Guardian’s Payment Contributory

Yes, the DEY will deduct the value of the benefit from your salary.  You will see the deduction listed in the left-hand column of your payslip, under your Basic Pay.

You will find the salary deduction listed in the left-hand column of your pay slip, under your Basic Pay.  It may be listed as ‘Grouping of Unpaid’.

Maternity benefit and illness benefit are liable to income tax. They are not liable to Univeral Social Charge (USC) or PRSI. As these benefits cannot be taxed at source, Revenue will reduce your annual tax credits and rate band to collect any tax due on a weekly basis.

ASC stands for Additional Superannuation Contribution. The ASC was introduced in January 2019 to secure additional employee contributions to ensure the sustainable financing of public service pensions into the future. ASC applies to serving public service employees who have a public service pension entitlement. It does not apply to public service pensioners.

It is legislated for under the Public Service Pay and Pensions Act 2017.  It is chargeable on pensionable remuneration only and different rates apply to teachers in the Teacher Pension Schemes (Old and New Entrants) than to those in the Single Pension Scheme.

For members of the Old and New Entrant pension schemes (i.e. teachers who entered service prior to 1^st January 2013), the rates are as follows:

€0 to €34,500	Exempt
Over €34,500 to €60,000	10%
Over €60,000	10.5%

The rates for members of the Single Pension Scheme are as follows:

€0 to €34,500	Exempt
Over €34,500 to €60,000	3.33%
Over €60,000	3.5%

You can find more information in this 2023 article from INTO’s Intouch magazine. 

You can also find out more on the pensions section of our website.